Paying for cash and pulling my money back out in Mississippi?

[Joe S.]

So I’m looking at buying a number of properties in Mississippi. I can pay cash for a few of them, but at some point I would tap out. Has anyone successfully bought properties in Mississippi and been able to pull their money back out Through a refinance? It’s a number of the properties are under 50,000. Also I would need to use some sort of stated income/non-QM loans.

[Susan Maneck]

As a Mississippi investor this is what I do. I initially pay cash for my properties. After I have rehabbed and rented it for a year I apply for a Wells Fargo first-place HELOC. The paperwork needed is a pain but they are one of the few lenders that will give HELOCs for investment properties. Closing costs are minimal, you just need to pay for the appraisal and even that can be rolled into the HELOC. They will usually offer you a teaser rate for a year comparable to the lowest interest rates available. I have multiple HELOCs so what I do is play musical chairs with them like you would balance transfers. I then call up WF and whichever HELOC I paid off I ask for another teaser rate. You need to borrow at least 10K at a time to get those. Hope this helps. I bought my first property with the help of my mother 10 years ago, but by using this strategy I know have a portfolio of ten properties.